January 20, 2009 / 5:59 PM / 9 years ago

US STOCKS-Wall St hits session lows after Obama's speech

(Updates to reflect stocks hitting session lows)

NEW YORK, Jan 20 (Reuters) - U.S. stock indexes extended losses and hit session lows on Tuesday after President Barack Obama’s inauguration speech provided few new details about measures to tackle the growing economic crisis.

“I think people were looking for something, new plans, new hopes,” said Joe Saluzzi, co-manager of trading at Themis Trading in Chatam, New Jersey.

“They didn’t hear something new.”

President Obama’s speech came on the heels of news that State Street Corp (STT.N), the world’s largest money manager for institutions, posted a $6.3 billion unrealized loss in its investment portfolio.

JPMorgan (JPM.N) was the top drag on the Dow, pulled lower by fresh fears about the health of the global banking system and after the State Street news. For details, see [ID:nN20411146]

    Since his Nov. 4 election, Wall Street has bet that Obama will put plans in place to help stabilize the sliding economy and stem rising unemployment.

    But stocks started the session lower on Tuesday, pushed down by the ailing banking sector and grim earnings expectations.

    The Dow Jones industrial average .DJI fell 178.65 points, or 2.16 percent, to 8,102.57. The Standard & Poor's 500 Index .SPX stumbled 25.70 points, or 3.02 percent, to 824.42. The Nasdaq Composite Index .IXIC dropped 52.07 points, or 3.40 percent, at 1,477.26. (Reporting by Deepa Seetharaman; Editing by Jan Paschal)

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